All you need to know about SAS

Micco will delve into various aspects of the SAS, including its main features, registered capital, modus operandi, tax system, social system, and transfer of equity.

Apr 25, 2024

In France, the SAS (simplified company limited by shares) is one of the most common forms of business, favored by entrepreneurs for its great flexibility.Micco will delve into various aspects of the SAS, including its main features, registered capital, modus operandi, tax system, social system, and transfer of equity.

If you want to set up a French company of your own before getting to know SAS in depth, Micco offers you a professional service throughout the entire process.

Micco stands as an all-in-one financial platform tailored for business creators, facilitating a comprehensive array of services. These include streamlined procedures for company registration, professional bank account establishment, capital deposit management, and more.

Micco's commitment to empowering business creators extends to:

  • Effortless company registration processes
  • Seamless professional bank account setup
  • Convenient capital deposit management solutions
  • A suite of additional financial tools and resources catered to entrepreneurs

With Micco, business creators can access a one-stop solution designed to streamline their financial operations and support their growth endeavors effectively.

Table of Contents

  1. Key Features of SAS
  2. SAS Registered Capital
  3. Operating Mechanism of SAS
  4. Tax System of SAS
  5. Social System of SAS
  6. Transfer of SAS Shares

1. Key Features of SAS

SAS, short for Simplified Joint Stock Company, is a popular business form in France due to its immense flexibility. Entrepreneurs love it for that.

SAS stands out for its flexibility. Its shareholders have the freedom to set the company's rules and regulations according to their needs, including operational methods and share transfer terms.

Though SAS offers great freedom to its shareholders, drafting the company's statutes can be complex. It's advisable to consult a specialized lawyer to ensure compliance.

2. SAS Registered Capital

Amount of Registered Capital:The amount of SAS's registered capital is determined by the shareholders themselves, with a minimum of just €1. It can be contributed in cash or in kind, such as equipment, vehicles, real estate, commercial funds, patents, etc.

Capital Disbursement:Upon establishment, at least half of the registered capital must be disbursed, i.e., deposited into the company's account. The remaining portion must be disbursed within 5 years after registration.

Evaluation of In-kind Contributions:When both of the following conditions are met, an expert evaluation of the in-kind contribution's value is mandatory:

  • The value of the in-kind contribution exceeds €30,000,
  • And the total value of the in-kind contributions exceeds half of the registered capital.

3. Operating Mechanism of SAS

Management Structure:Every SAS must have a president who represents the company externally. The president bears civil and criminal responsibility for the company's actions.

Decision-making System:While SAS must comply with legal requirements regarding decision-making, shareholders can determine the company's internal decision-making methods, statutory numbers, proportions, etc., when drafting the articles of association.

Decision-making Authority:Certain decisions can be made independently by the president (e.g., relocating the headquarters), while others must be made collectively by the shareholders (e.g., increasing registered capital, changing the business scope).

4. Tax System of SAS

Profit Tax:SAS defaults to Corporate Income Tax (IS).

Personal Income Tax:Under certain conditions, profits can be treated as personal income tax (IR).

Dividend Tax:Dividends fall under capital gains tax, subject to a flat-rate withholding tax (PFU) of 30%.

5. Social System of SAS

Social Insurance:The SAS president is considered an employee and enjoys social security benefits similar to senior employees.

Social Insurance Costs:SAS must pay the same social security costs as senior employees for the president, excluding unemployment insurance.

6. Transfer of SAS Shares

Transfer of Shares:The transfer of SAS shares is usually free, with no specified approval procedure in the law, but specific provisions can be made based on the company's statutes.

Transfer Tax:The transfer of shares incurs certain taxes, with a tax rate of 0.1% of the transfer price.

As one of the most common company forms in France, SAS offers entrepreneurs extensive freedom and flexibility. Founders can freely set the company's operating rules and share transfer terms according to their needs. However, compliance with legal requirements must be ensured during operation to maintain the company's compliance.

As a financial services company, Micco provides comparable services and solutions tailored to the needs of modern businesses. With a user-friendly platform, competitive pricing, and a commitment to customer satisfaction, Micco is a viable option worth exploring.

Whether you're a freelancer, startup, or established enterprise, Micco offers the tools and support needed to streamline financial operations and drive business growth. Check out Micco today to discover how it can complement your business banking needs.